Friday, September 02, 2005

Item 1. Can you sue a government enterprise for competing with you and taking your customers?

Natural gas distributors plan to sue SEWA (Sharjah Electricity and Water Authority) for loss of business according to this story:

their gas distribution business is severely affected by the connection of the natural gas supply to all the residential and commercial areas in Sharjah.

“Our business is totally ruined as we are witnessing a severe loss in our monthly profits. So far, the sales have gone down by 90 per cent and the situation is expected to worsen once all areas in Sharjah are supplied with natural gas. Thousands of employees of around 80 gas distribution companies in Sharjah are expected to lose their jobs as there is hardly any work in the field of distributing gas cylinders.

In the last two months, our company lost Dh20, 000, and we are expecting more losses during the coming months,” Engineer Mohaned Al Haidar, Sales and Marketing Manager of Abu Dhabi Gas Distribution Company, told your favourite No. 1 newspaper, Khaleej Times.

Item 2. Can consumers sue a government enterprise for failure to deliver?

JEDDAH, 2 September 2005 — The power outage, which hit more than 10 neighborhoods in Jeddah on Wednesday, paralyzed many government departments and affected private citizens. Hundreds of families left their overheating homes and drove to relatives’ houses in areas unaffected by the power cuts.

Many people across the city found themselves trapped in elevators; the Fire Department responded to frantic calls to release them. Businesses that rely on continuity of electric supply reported considerable damage to their operations.

Swift reprisals against the electricity supply company were demanded by many interviewed by Arab News.

More than 4,000 call cabin operators across the Kingdom are preparing to take legal action against the Saudi Telecom Company seeking an increase in the 20 percent commission that the company allows them, Al-Riyadh newspaper reported yesterday. The operators also call for additional privileges for international phone calls made through the call cabins in order for them to attract customers.

Call cabins have been closing down across Saudi Arabia after STC slashed international call charges, thus affecting the livelihood of more than 20,000 call cabin employees. Talal Al-Shammari, an investor in phone cabins in the Eastern Province, said, “We have every right to file a lawsuit against STC because we’ve lost 70 percent of our income and the company is responsible.”